The new Jordanian insolvency law: between the philosophy of modification and the legislative reality

Abstract

This study focuses on the philosophy on which the Jordanian insolvency law no (21) of (2018) is based. It emphasizes on the objectives that this law aims to realize in addition to clarify the dedicated principals allowing to achieve its goals.  It turned out that the insolvency law aims to achieve a main goal consisting of the safeguard of the enterprise if it were viable. In doing so, other objectives would be reached such as: maintaining an economic balance in the country, retention of jobs which prevents deepening unemployment, protecting the different categories of creditors. In addition, this study sought to expose the points of agreement and divergence between the abolished bankruptcy regime, which was codified in the current law of commerce under the title of judicial arrangements and bankruptcy in Book 4, and the new insolvency law, by highlighting the principals on which bankruptcy relied on, and the necessity to replace them with new ones brought by the insolvency law, leading to avoid criticism addressed to them. It concludes that insolvency agent is entrusted with a huge role in the context of insolvency proceedings. As a result, such a role should be rationalized in some cases, so that his functions could be suitable to his legal status and his professional qualification. Moreover, this study relied on the use of comparative legislation and jurisprudence in order to clarify the will of the Jordanian legislator, and realize the purpose pursued by switching from bankruptcy to insolvency, thanks to its earlier transition to that institution. Finally, in order to reach its purposes, the study has employed the descriptive approach and the analytical one.